Cooperative Strategy

Culture & Socio-Cultural Issues in International Cooperation

Dr Robert Harris

2011 masslearning.com

What is Culture?
Culture is learned, shared and transmitted Can be passed on by family, social, state and religious organisations Two Types of Cultural Knowledge
Factual : facts that can be studied and understood Interpretative : requires experience and degree of empathy.
2011 masslearning.com

What is Culture?
Success of an alliance often depends on whether it is culturally accepted Managers must avoid applying their own cultural values or rules of behaviour Self reference criterion trap
2011 masslearning.com

Culture Defined
The sum total of learned beliefs, values and customs that serve to direct managerial and employee behaviour in a particular country market

2011 masslearning.com

Components of Culture: 1
Beliefs:
A large number of mental and verbal processes which reflect our knowledge and assessment of products and services

2011 masslearning.com

Cultural Values and their Relevance to Manager/Employee Behaviour

Value
Achievement & success Efficiency & practicality Progress Material comfort Individualism External conformity Youthfulness

Features
Success flows from hard work Admiration of things that solve problems People can improve themselves The good life Being oneself Uniformity of observable behaviour

Relevance To Behaviour
Justification for acquisition of goods Stimulates purchase of well functioning products Ready acceptance of new/improved products Fosters acceptance of convenience/luxury products Stimulates acceptance of customised or unique products Stimulates interest in products used by others

State of mind that stresses being Stimulates acceptance of products young at heart that promote youthfulness

Source: Schiffman, L.G. & Kanuk, L. L. (2000)

2011 masslearning.com

Components of Culture: 2
Values:
The indicators stakeholders use to serve as guides for what is appropriate behaviour, they tend to be relatively enduring and stable over time and widely accepted by members of a particular market

2011 masslearning.com

Components of Culture: 3
Customs:
Overt modes of behaviour that constitute culturally approved or acceptable ways of behaving in specific situations. Customs are evident at major events in ones life eg birth, marriage, death and at key events in the year e.g. Christmas, Easter, Ramadan, etc.

2011 masslearning.com

A Cultural Framework
Religion Language Values & Attitudes

Aesthetics

Cultures

Education Social Organisations

Law & Politics Technology & Material Culture

2011 masslearning.com

Adapted from Terpstra & Sarathy (2000)

Elements of Culture
Aesthetics Refers to designs, shapes, colours etc. Need to consider local preferences even if developing a global brand Social Organisation Defines the way people relate to each other: role of men and women, social class, family, group behaviour etc.
2011 masslearning.com

Elements of Culture
Family Unit: fundamental unit of social org.; Information on household units useful Roles and status: gender roles Social hierarchy: income, power, religion, wealth - need to understand social stratification Attitudes to foreign products Attitudes towards achievement Attitudes towards change

2011 masslearning.com

The Socio-cultural Environment

Understanding of socio-cultural differences is of prime importance in ensuring success in foreign alliances: language religion social organisations aesthetics education plus many more!!
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Culture & International Cooperation

Cultural segmentation important in order to offer the right product and use appropriate business communications. Need to understand extent of cultural differences in relation to:
Language Needs and wants Consumption patterns Market segments Socio-economic factors Marketing conditions
2011 masslearning.com

The Socio-cultural Environment

Firms increasingly need to understand partners requirements and how to manage operations across countries e.g. Honda: Different organisational structures and synthesis of Resource Based Management style.

2011 masslearning.com

The Main Silent Languages in Overseas Business: 1

Silent Language Implications For Marketing & Business

Time

- Appointment scheduling - The importance of being on time -The importance of deadlines - Sizes of offices -Conversational differences between people - The relevance of material possessions Source: Hall & Hall (1987) - The interest in the latest 2011 masslearning.com

Space Things

The Main Silent Languages in Overseas Business: 2

Silent Language Implications For Marketing & Business

- The Friendship significance of trusted friends as social insurance in times of stress and emergency - Rules of negotiations based on laws, Agreements moral practices or informal customs

2011 masslearning.com

Cultural Influences on Business Behaviour

Cultural Forces Religion History Family Language Education Arts Cultural Message Symbols Morals Knowledge Rules of Behaviour Consumer Decision Process Selecting Prioritising Wants Decision Making

Behaviour
Adapted from: Jeannet and Hennesey (2002)

2006 masslearning.com

Culture & International Cooperation

Discussion Point: What are the key cultural issues that need to be considered by managers? Consider how cultural differences may impact on the business you have chosen for your assignment:
Product, price, promotion, place, People, processes and physical elements Communications, customs, etc.
2011 masslearning.com

Dr. Robert Harris

File source: masslearning.com

2011 masslearning.com